Tracking Mortgage Rates? Consult Your Local Gas Station Attendant.

US Consumer costs for gas prices is increasing, and is currently up 30% since January 2009.

No surprise here really, as we've seen this kind of run-up over the past five or so spring seasons. What may be a surprise to some mortgage rate shoppers is that increases in consumer fuel prices may very well signal home loan rate spikes - as rising gas prices at the pump indicate the rising cost of energy as a whole.

Rising gas prices are indicative of the rising cost of energy and, indeed, crude oil is closing in on its 2009 highpoint. As these energy costs grow, US inflation grows along with them.

Inflation - as we know - always creates negative pressure on mortgage rates. When it climbs, mortgage markets tank and rates rise -- often sharply and without a whole lot of advance notice.

Lesson for Homebuyers? Check Gas Pump Prices to Gauge Mortgage Rate Movement

If you're looking to buy a home or refinance your present house, gas prices at the pump pump may provide some insight into what mortgage rates (and housing affordability) will look like in the near future.

As for now - signs point to a mortgage rate increase. Even a small .25% increase in gas prices can make a difference - adding up to $372 in annual costs to a $200,000 home loan. Multiply that $372by 30 years and you're looking at$11,160.00.

In the past week - gas prices are already up by ten cents / gallon.

I hope you found this post useful! As always, if you or anyone you know is in need of a Florida mortgage broker, then I’m your guy. Call me at 863-604-3019 or apply online . We’ll keep you posted and let you know when it’s time to pull the trigger!